Posted 3/17/2024, 1:12:38 AM
Rupee Strengthening Triggers Exporter Fears of Losing Competitiveness
- Dollar has fallen to 5-month low against rupee, concerning exporters who want a cheaper dollar
- Government fears cheaper dollar could increase imports and disrupt import-export balance
- Exporters facing high production costs due to high interest rates, energy prices; hard to compete
- Further dollar devaluation could increase trade deficit and current account deficit
- Though stable exchange rate has not attracted foreign investment, it has provided confidence to exporters
